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Agency Management Systems and Sales Success

Some people make decisions based on data; others tap into more emotional factors. Deciding to adopt an agency management system is a big decision. The rewards can be tremendous, but it takes money and time to make it work. (Fortunately, some options, like NextAgency, are more affordable and easy-to-use than others, but that’s for another post). When considering agency management software, considering both objective and subjective perspective can be helpful.

You’ll see some posts from the subjective perspective in this blog soon, but for this article, let’s focus on some objective data.

Several years ago, I led a study of insurance agents called the Trailblazed Sales Project. We surveyed 200 professionals in six states who specialized in individual, small group and senior insurance sales. Our goal was to find out what separated successful producers from their less successful competitors. The results formed the basis of my book, Trailblazed: Proven Paths to Sales Success.

We surveyed health insurance agents for two reasons. First, several large health insurers underwrote the study and wanted data they could use. Second, and more important, health insurance agents make an ideal subject for this kind of study. By law and regulation, every agent in a community sells the same products for the same price – no discounts or games allowed. If a broker closes more sales than others in the same community, it’s the result of what that broker is (or isn’t) doing.

Although selected at random, the sales success of our respondents fit nicely into a bell curve. About 25% had seen year-over-year sales growth of 20% or more. Roughly half experienced some annual growth, but less than 20%. And close to 25% saw no growth or their sales declined from the previous year. We categorized the respondents as High Growth, Low Growth or No Growth Producers, then set about seeing what practices, processes and perspectives separated one category from the others.

Marshaling Resources

We identified several drivers of sales success and grouped those into what, in the book, I refer to as paths and trails. This blog isn’t the place to dive deeply into all the attributes that separate High Growth Producers from their less successful colleagues. That’s what the book does. There are, however, a few drivers that brokers considering whether to adopt an agency management system – or any new technology – should consider.

The survey showed, for example, that High Growth Producers are significantly more likely to incorporate technology into their business. This was across virtually every type of technology an agency could deploy. Not surprisingly, No Growth Producers were the least likely to use technology. This finding – part of the Business Acumen path – was closely related to another: High Growth Producers were much more likely to invest in their business than their colleagues.

Successful sales professionals, the study found, marshal resources to drive their businesses forward. It can be difficult to determine which is the cause or effect here. Are brokers successful because they invest in their business? Or are already successful brokers better able to make an investment in their business?

Based on my sales experience, which spans decades in a variety of roles and companies, I believe there is a virtuous circle at play. Investments breed success which enables additional investments. While the study didn’t determine which is egg and which is chicken, at some point every agency had to take a leap of faith and make that first investment. Whichever comes first, what the data shows is clear: success comes to agencies who invest in the tools necessary to be successful. The data shows High Growth Producers use some of these investments to bring technology into their businesses.

These two drivers, taken together, signify that marshaling resources in connection to technology correlates highly with success. High Growth Producers recognize that technology can give them a competitive edge. By simplifying administrative tasks insurance agency software can free up time for brokers and their teams to focus on selling to prospects and servicing clients.

However, this leads to additional questions: How much to invest? In what technologies? From what vendors? My next post will dive into how to determine what to invest – and if any investment is worthwhile. As to what specific technologies, the answer is simple: only that software that can save you time, make you money and gain a competitive edge.

NextAgency: A Sound Investment

However, this leads to additional questions: How much to invest? In what technologies? From what vendors? My next post dives into the whether and how much questions. As to what specific technologies, the answer is simple: invest in software that saves save more time, make you more money and provides a greater competitive edge than you’d have without the investment.

Now, I’m biased here, but I’d like to point out that NextAgency rises to the occasion. No surprise here. We built NextAgency to help brokers save time, money and clients.(In a previous post I wrote about how to determine if investing in agency management software made sense, but let’s talk about NextAgency in particular.)

NextAgency’s agency management system, NextBroker, puts all your forms and documents in one place, so you and your team don’t waste time trying to find it – or worse, discover you left forms at the office you need in your prospect’s office. With NextBroker, all the documents and forms you need are just a few clicks away, wherever you have an internet connection.

Keeping commitments and meeting deadlines lead to more sales. NextBroker makes that easy by keeping notes, tasks and reminders accessible to everyone who needs to see them – and only those who need to see them.

Getting what you have earned gives you the resources needed to invest in technology. That’s why NextBroker includes commission tracking tools to identify missing payments and help create commission statements for employees and outside sub-agents.

Agency management systems should make it easier to obtain quotes, send out proposals and submit enrollment forms. NextBroker does all that.

NextAgency even helps brokers deliver additional value to their prospects and clients. Our employee management software, NextHR, helps your groups manage time and attendance, on-board new employees, track benefits and more. And NextHR is free when you subscribe to NextBroker.

The Trailblazed Sales Project Study shows that one reason High Growth Producers sell more than others is that they do a better job of marshaling their resources. This includes investing in their agency when it’s needed.

To see why NextAgency may be the agency management system your agency needs, please visit NextAgency.com. Better still, see a demonstration of NextBroker and NextHR in action by registering for one of our regular webinars. And see how our agency management system can lead to sales success.